New Delhi, April 18:
The United States agency
for international development (USAID) has accorded a preferred status to
companies of allied countries for undertaking sub-contract works in the bombed
out Iraq. India does not figure in this list.

“Prime contractors, who are responsible for
successful completion of their contracts, will be able to award subcontracts to
qualified American and foreign companies. The latter will include, but not be
limited to, those companies located in coalition partner countries,” the agency
said in a statement.

However, Indian companies, under the aegis of
the Federation of Indian Chambers of Commerce & Industry and Confederation
of Indian Industry have already registered themselves with USAID for
reconstruction works. Ficci, which has been successful in including wheat in
the UN’s oil-for-food programme by lobbying in New York is positive that Indian
companies may bag sub-contracts worth $10 billion from prime contractors.

“The Ficci will sending another delegation to
the US for the same,” its president AC Muthaiah said.

On the other hand, CII is keeping its hopes
low. “There is no point in taking a delegation to the US as USAID does not
entertain any such move,” a CII official told FE. “Most of the contracts will be
awarded to the US and its allies,” he added.

The agency has issued nine solicitations for
Iraq reconstruction, a part of $1.7-billion reconstruction programmes excluding
$543 million humanitarian aid.

Four projects have already been awarded to
American companies — personnel support contract is awarded to the
Virginia-based International Resources Group; seaport administration contract
to the Washington-based Stevedoring Services of America; and local governance
contract has been awarded to the North Carolina-based non-profit organisation,
Research Triangle Institute. The primary and secondary education contract has
been awarded to Creative Associates International Inc, another US entity.

Other contracts in the pipeline are airport
administration (management of humanitarian and trans-shipment operations by
air), capital construction (emergency repair of electrical supply, water and
sanitation systems, roads and bridges and public buildings), theater logistical
support (warehousing, customs clearance, trucking and provision of bottled
water), public health (to restore public health services) and Iraq community
action programme.

“The programme administered by USAID is
funded by US taxpayers. Revenues from the oil-for-food programme, or other
Iraqi or international sources have no contribution to these contracts,” the
agency said in a statement.

In all, 21 firms had been asked to bid for
various reconstruction and humanitarian projects in Iraq. “Only one of the
first eight contracts have been sole-sourced by USAID - for personnel support -
has been awarded to International Resources, which has a work record of over
two decades with the agency and with international development agencies in more
than 120 countries,” it said, adding “sole source means that only one firm is
solicited to undertake the work because it is uniquely qualified to do so.”

Even for construction works, American
companies such as the Bechtel Group Inc, Halliburton Co, Louis Berger Group and
Fluor Corp, have been invited to bid for about $900 million projects on an
emergency basis. Three more contracts are expected in agriculture, economic
governance and monitoring and evaluation of capital construction contract.